Marketing Vinamilk STP ( Segmentation, Targeting , Positioning )

1. Segmentation :

Segment Demographic Psychographic Behavioural Geographic

Children Age : 5-14 Lifestyle: Occasion: Daily All over Vietnam
Gender : Male, Outdoor-oriented, User status :
Female and prefer hanging Potential/daily
others out with friends users
Personalities : Usage rate :
Active , curious , daily
creativity Benefit sought :
provide
nutritions that
are good for
their growth.

Young adult Age : 15-25 Lifestyle : Occasion : All over Vietnam

Gender : Male , Busy life because Daily
female and others having a lot of User status :
Income : no tasks to do , do aFirst time users,
income or low lot of activities to
regular users ,
income satisfy their wants
protential users
Education: Personalities : Usage rate:
college/university Energetic , regular , daily
studens enthusiatic, Loyalty:
interested in Medium
novelty Benefit sought :
Good for body
growth , refill
energy
Adult Age: 26-44 Social class : Occasion: Daily All over Vietnam
Gender : Male, Middle and upper User status: Density:Average
female and others class Regular to high.
Material status : Personality User rate:heavy
Married , not traits: Desire to user .
married strike a work-life Loyalty:
Family size : balance usually Medium
Single person or stressful and busy Benefit sought:
3-4 people. ,energetic,sport- Good for health,
Income : Middle- oriendted delicious tate,
high income Lifestyle : Busy , convenient
Occupation: creative, flexible ,
Varies outdoor-oriented
Middle age Age: 40-60 Social class : User status: All over Vietnam
women Marital status: Middle class , First time from big cities to
Married upper class. users/Long time even small rustic
Gender : Female Personality users areas.
Occupation: traits: Calm, User rate: Density: Average
Either work or carring , loving, Heavy users. or High
retire happy. Loyalty:
Income : Middle- Lifestyle: Either Medium
High income busy or Benefit sought:
unoccupied, care Calcium in milk
about health helps maintain
bones or a tough
skeletal structure
The elderly Age: 65-70 Lifestyles: Well- Benefits sought: Region:
Income: pension, organized, health- affordable,easy Suburban areas,
most live off their conscious, to buy,prevent rural areas
children focusing on osteoporosis,kee Density: High
Gender: Mostly improving their p body
female physical and hydrated,increas
Family life cycle: mental e resistance,
single, married conditions, reduce fatigue
with children, seeking for Usage rate :
married without peacefulness medium-high
children Personality: users
Social classes: family-oriented , Usage situation:
middle class , realistic, In free time, in
upper class sometimes gathering events
Education: varies aggressive Buyer’s status:
Occupation: Potential users
most have retired

2. Targeting :
Vinamilk 100% organic has successfully applied the concentrated
marketing strategy to effectively dominate the high-income segmentation.
The main segmentation that Vinamilk targets is children from 5 to 14
Vinamilk also desires to improve physical health of children and aims to
nurture young talents as childrenare considered the pillar of a nation’s
tomorrow . The first reason why Vinamilk 100% organic chose this
segmentation is because children roughly account for 23.2% of the
population. Secondly, the amount of middle-class population is increasing
and they are starting to focus more on the value of the products rather
 than the price. This will lead to the result that Vinamilk 100% organic
could have more customers.

3. Differentiation:
3.1 Image :
Vinamilk succeeds in building its brand-awareness with aggressive
marketing campaigns and advertisements mainly concentrating on
Vietnamese families . In a campaign called ''Vinamilk 40 năm - Vươn
cao Việt Nam'' in 2016, Vinamilk targeted at the well-being of
Vietnamese children and aimed to nurture young talents with pure
fresh milk. Vinamilk successfully conveyed the message that
Vietnamese children would grow up happy and healthy thanks to their
high-quality products
3.2 Channel :
Vinamilk's liquid milk products have become popular and easy to find
throughout Vietnam because it uses 3 main distribution channels. The
first channel is the supermarket system, fromlarge supermarkets such
as Co.opmart, Big C to small supermarkets such as Vinmart, Family
mart.

The second distribution channel is key accounts such as schools,

hotels, and restaurants. And the last distribution channel is through
dealers with more than 220,000 stores in 63 provinces in Vietnam
(ISAAC 2019). These channels and distributors nationwide have
brought Vinamilk’s products to every corner of Vietnam with the
same quality.Due to the development of e-commerce, Vinamilk also
sells its products through online networks suchas Shopee, Lazada,
Vinamilk website.
 3.3 Product

Vietnamese people nowadays are concerned about their height and

personal health, especially when the rate of underweight and stunting
Vietnamese children is considerably high compared to the world
according to Thanhnien2018 . Fresh milk products are the best
solution to supplement calcium and other essential nutrients. By
producing extensive product lines including Vinamilk less sugar and
Vinamilk skim fresh milk for dieters, adding more scents and creating
Vinamilk 100% Organic for high-end customers, Vinamilk has
maintained its position as a leadingbrand in the diversified fresh milk
market .

4. Positioning map :
4.1 Map 1 : Price and Milligram of calcium in fresh milk
As can be seen from the map, in terms of price, Meadow Fresh has
both the highest price (43,5 VND/ 4 cartons) and highest level of
calcium (125 mg) while Dutch has the lowest price (29,5 VND/ 4
cartons) compared to other milk brands. On the other hand, Vinamilk
has quite a reasonable price (31,5 VND/ 4 cartons) which is affordable
to most Vietnamese consumersnowadays. As Vinamilk is a popular
and top milk brand in Vietnam, consumers can easily find them in
supermarkets, markets, grocery stores or any other retail shops. In
contrast, Meadow Fresh is at the top of both attributes, but as it is
considered as a premium milk, hence, the products’ display is still at
an average frequency compared to others.

4.2 Map 2 : Brand Awareness and Market Share

Overall, Vinamilk takes the lead in both attributes consisting of high
company shares and brand recognition with 40% (Euromonitor, 2020)
of total shares and 132.14 points of CPRs (Appendix 12) respectively.
When it comes to Meadow Fresh and Love In Farm, they are
considered as new brands penetrating into the Vietnamese market. For
TH True Milk, even though it joined the dairy industry quite late in
 2010 TH True Milk tried to keep up with the fast pace with 11.56%
CAGR in the 2015-2012 period (Phuong Anh, 2017).

4.3 Value proposition

According to the two positioning maps, Vinamilk’s value proposition
in the dairy industry is The Same for Less. Even though Vinamilk has
low milligram of calcium in the fresh milk, its affordable price is the
superior factor among other brands. On top of that, Vinamilk has
defined itself as the biggest company in Vietnam’s milk industry